PI's: Annual Increase NET Rent
Rents: Annual Increase NET Rent
SWBM070: Annual increase in NET rent
Rationale, Definition & Worked Example
Below you can find information regarding the rationale, definition and formula for this performance indicator. This includes a worked example to demonstrate how this indicator should be calculated.
Rationale
Annual increase in net rent tracks changes in core rental income over time, supporting assessment of rent setting policy, compliance with rent standards, and the impact on affordability and income generation.
Definition
Annual increase in NET rent.
Formula
(Current year average net rent – Previous year average net rent) ÷ Previous year average net rent × 100
Worked Example
Previous year average net rent = £100.00
Current year average net rent = £105.00
Calculation:
(£105.00 – £100.00) ÷ £100.00 × 100 = 5%